Payments

How do I work out what I’d save by settling early?

Settling early can save real money on a simple-interest facility, because you stop paying for time you no longer borrow. Working out the saving is a two-figure comparison.

The comparison

  • Request an up-to-date settlement figure — what clears the facility today.
  • Look at the interest still to run if you carried on to the end of the term (from your schedule).
  • The difference between paying it off now and paying the remaining scheduled interest is roughly your saving.

Deciding

Settling early makes sense if you have the cash spare and the interest saved beats what that cash would otherwise earn or enable. There’s no early-settlement penalty with Credicorp, so the decision is purely about your cash flow. If clearing it would leave you short, keeping the facility and paying to plan may be the wiser call — or overpay partially to split the difference.

Your facility is priced with simple interest and the figures fixed up front on your Key Information Sheet, so nothing here changes what you owe by surprise — it only changes how you view, manage or evidence it.

See also: How to get an early settlement figure, How early settlement works, Is there a penalty for early repayment?.

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